How Lam Research Stock Gained 190%
Over the year-long period ending 2/13/2026, Lam Research (LRCX) saw a modest 1.85% stock rise, powered by soaring revenues and margins amid booming AI-driven markets. Yet a sharp 7.6% pullback after late January’s earnings revealed investors’ caution amid tech volatility, setting a dynamic stage ahead.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 2132025 | 2132026 | Change | |
|---|---|---|---|
| Stock Price ($) | 82.5 | 235.5 | 185.3% |
| Total Revenues ($ Mil) | 16,209.1 | 20,560.5 | 26.8% |
| Net Income Margin (%) | 26.5% | 30.2% | 14.1% |
| P/E Multiple | 24.7 | 47.6 | 92.2% |
| Shares Outstanding (Mil) | 1,287.1 | 1,254.9 | 2.6% |
| Cumulative Contribution | 185.3% |
So what is happening here? The stock surged 1.85% as revenues jumped 26.8%, net income margin improved, and the P/E multiple nearly doubled, reflecting strong investor confidence ahead of key developments.
Here Is Why Lam Research Stock Moved
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- AI-Driven WFE Expansion: 2026 WFE projected to grow from ~$110B to $135B, showing significant market expansion driven by AI and DRAM.
- Advanced Packaging Growth: Advanced packaging business forecast to grow >40% in CY2026, expanding SAM via HBM4/HBM4E and GAA.
- Customer Support Revenue: Fiscal 2025 CSBG revenue reached record $7.2B, driven by over $40B NAND upgrade cycle to 200+ layers.
- Margin Expansion & Profitability: Fiscal 2025 diluted EPS up 49% YoY to $4.89, with Q1 FY26 gross margin hitting record 50.6%, reflecting operational leverage.
- Recent Market Headwinds: Stock pulled back ~7.6% post-Jan 28, 2026 earnings due to broader tech volatility and macro concerns.
Current Assesment Of LRCX Stock
The core investment debate is centered around: Whether record demand from the AI build-out can override macro risks from China export controls and a potential cyclical peak in semiconductor capital spending.
The prevailing sentiment appears to be neutral. The powerful AI-driven growth narrative is fully offset by tangible geopolitical risks (China export controls) and cyclical concerns (peaking margins, high valuation). Sentiment is balanced on a knife’s edge.
| Bull View | Bear View |
|---|---|
| AI is a structural tailwind driving a multi-year capex ‘Super-Cycle’. Lam’s etch leadership and recurring revenue provide resilience and pricing power through any short-term volatility. | High China revenue exposure (35%) is a critical vulnerability to new US export controls. Elevated valuation and margins are peaking as the cycle matures, risking sharp compression. |
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